The information in this chapter is meant
to be a summary of benefits for UVM faculty members. In regard to
insured benefits, actual plan provisions are contained in the
individual insurance/subscriber certificates. In the case of
discrepancies, the insurance/subscriber certificate will prevail. UVM
reserves the right to amend, alter, or terminate all benefits herein
described.

Who
is Eligible for Benefits?

Unless noted otherwise, the
following description of eligibility for employees and dependents will
apply to all UVM benefits.

The
following four groups of employees are eligible for UVM benefits:

Benefit
Groups Defined

Months of Year Worked

Full-time Equivalency

Full-Time

Group A

12 months

100%

Group B

9, 10, 11 months (academic year)

100%

Group C

12 months

75 - 99%

Part-Time

Group D

9, 10, 11 months (academic year)

75 - 99%

For benefit eligibility, there is a difference between
full-time and part-time employees.

For benefit eligibility purposes, a
full-time faculty member is employed in a regular capacity of at least
75% of a 12 month work year (Groups A and C) or a faculty member in a
regular capacity of 100% of an academic year of 9, 10, or 11 months
(Group B). A part-time faculty member is employed in
a regular capacity of between 75 and 99% of a 9, 10 or 11 month work year (Group
D).

Note: An employee is considered to be
employed in a regular capacity if the position is continuing, not
temporary, and it appears on UVM's position inventory, and a completed
and approved position description exists.

Dependent Eligibility

UVM employees may wish to apply for
benefits for their dependent spouse, civil union partner or dependent
children. In order to qualify, dependents must meet the
eligibility conditions of the University medical, dental and life
insurers. The following summarizes those conditions:

Dependents are considered qualified
dependents if they are the spouse, civil union partner or dependent child of the
employee. The University reserves the right to require proof
of marriage or a civil union. The University also reserves
the right to require proof of legal responsibility for dependent
children. Note: For the purposes of University
policy, the term "party to a civil union" means a legal civil union as
defined by Vermont Law. It will also include for the first three
months of employment, the same sex spousal equivalent of the new
employee who comes to UVM from another state where civil unions are not
legal. Such employees must enter into a marriage under
Vermont law within three months of employment in order to retain spousal
benefits.

A qualified dependent child is under 19
years of age and single, and:

a natural child of an employee; or

a legally adopted child of an employee; or

a stepchild, foster child, or any other child for whom
an employee has legal guardianship and who lives in the household of an
employee in a parent/child relationship and is dependent upon the
employee for support.

Qualified dependent children are covered until the end of the month
after their 19th birthday or their marriage, if earlier.
Eligibility may be extended beyond an eligible child's 19th birthday to
the 24th birthday as long as the child is otherwise eligible and a
full-time student. In addition, eligibility is extended to a
child with a disability which prevents the child from being able to
obtain meaningful, gainful employment. The dependent must
have been eligible for benefits prior to his/her 19th birthday and such
disability must occur or exist on the date eligibility would normally
end. Proof of such disability must be provided to
the medical plan administrator or the insurer prior to the child's 19th
birthday, or in any event, no later than 20 days following age
19. If approved, eligibility for such a child will be
continued as long as the child lives with the employee.

Adding a Dependent

New dependents are eligible for benefits
on the first day of the month following the day they become your
qualified dependent, provided you complete an enrollment form and agree
to make the necessary contributions, if required. If for some reason
you do not enroll within 20 days of the date your dependent becomes
eligible, coverage will be delayed until the first day of July in the next enrollment year.

If a child is born or adopted while you
are covered, the child will be automatically covered for up to 31 days
after the date of birth or placement for adoption. Coverage beyond the
31 day period will be continued provided you enroll the child within 31
days of the date of birth or placement for adoption (and make the
necessary contributions, if required). If you enroll within 32 to 60
days following the birth or placement for adoption, the child's
membership and the new membership type will become effective on the
first of the month following receipt of your enrollment request. If you
fail to enroll within 60 days, you must wait until the next open
enrollment to do so. To prevent a lapse in coverage, Human Resource
Services should be immediately notified and you should complete an
enrollment form after the child is born.

If a child is born to a covered child
while the mother is insured as a dependent child, the birth will be
covered and the child will be insured for 31 days after the date of
birth. In order for such a grandchild to be covered beyond 31 days, you
must adopt the child or be appointed legal guardian for the child.

An adopted child is eligible on the date
the child is placed in your legal custody. You are considered to have
custody when there is a legal document which places the child under
your care and protection and the child is in your physical possession.
A newborn adopted infant will not be considered to be in your physical
possession until the infant is discharged from the hospital immediately
following birth.

Change in the Number of
Dependents or Your Marital Status

Please report immediately to the Human
Resource Services any changes in the number of your dependents when
that change results in the loss of eligibility. Failure to do so within
60 days of the change will result in loss of COBRA rights for your former dependents.

If your marital status changes, or a civil
union ends, report that change immediately to Human Resource
Services. Failure to do so will result in the loss of COBRA rights.

In the case of a dependent child who no
longer qualifies as a dependent, coverage will terminate at the end of
the month on which she or he no longer qualifies for
benefits.

In the case of divorce or dissolution of a
civil union, coverage of your former spouse/civil union partner
terminates on the first day of the month following the day your divorce
becomes final or the date of a legal separation, or the first day of
the month following the day on which the civil union partnership ends,
whichever comes earlier. In the case of your civil union partner, the
relationship will be deemed terminated on the date indicated on the
Notification of Termination of Civil Union Partnership which must be
completed by you. Your spouse or civil union partner may be able to
extend coverage at the group rate at his/her expense by exercising
COBRA rights.

Change in Address or Name

Notify your department of any change in
your name or address immediately after the change. Change your address
through PeopleSoft
Employee Self-Service or by e-mailing HRSInfo@uvm.edu with
the new address. You must notify your retirement plan, medical
insurance, and dental insurance vendors with address changes directly.
You can find vendor change of address forms in the Forms section of the HRS web site.

Change in Your Employment Status

Any University initiated temporary
reduction (not exceeding 4 months) of your FTE will not affect your
insurance coverage. However, vacation and medical leave will be based
on your reduced FTE and retirement contributions will be based upon
your reduced salary.

If you initiate a temporary reduction of
your FTE and remain in benefit groups B or C, it will not affect your
insurance coverage. However, vacation and medical leave will be based
on your reduced FTE and retirement contributions will be based upon
your reduced salary. If you move outside benefit groups B or C, except
as described in the UA Full-Time Collective Bargaining Unit's labor agreement, your benefits will be
reduced or terminated as appropriate based on your benefit group and your
length of service. Deductions will begin automatically unless
you notify Human Resource Services to discontinue your insurance. This
cost is waived for reductions lasting less than 30 calendar days;
however to maintain coverage, you must always make your own personal
contributions.

Enrollment and Effective Date of
Coverage

In order to enroll, you must complete and
sign the appropriate group enrollment form and submit it to Human Resource
Services. Normally, you will be asked to enroll in all benefits
except the retirement plan at the new employee orientation, which is
typically held on the first and third Monday of each month. (If Monday is a
holiday, orientation is generally held on the Tuesday following the holiday.)

Your
coverage will begin on the date you become eligible if you
enroll and agree to pay the required premium within 15 days of your
eligibility date. Otherwise, it will become effective on the first of
the month following the date upon which the Human Resource Services
Office receives your application, provided it is received within 60
days of your eligibility date (20 days for Northeast
Delta Dental, life, and long-term disability insurance). If you do not
apply within 60 days of your eligibility date (or 20 days for Northeast Delta Dental, life and long-term disability
insurance), you must do so during open enrollment for coverage to begin
in the new plan year on July 1. Both life and disability
insurance require proof of good health and the carrier's approval
before your coverage can begin.

In the case of life insurance, if you wish
to enroll after 20 days of employment, you must do so during
Open Enrollment, and coverage is contingent upon providing proof of
insurability to the life insurance carrier. In the case of long-term
disability insurance, if you do not enroll within 20 days of your
eligibility date, you may enroll later during Open Enrollment, but you
will be required to show proof of insurability. You must be actively at
work on the date you become eligible for coverage. Otherwise, coverage
will not begin until you are actively working at UVM in an eligible
position for at least 5 consecutive work days.

Coverage for eligible dependents will
begin when your coverage begins if they meet the definition of
dependent on that date unless, as is the case for life insurance in
excess of $50,000, proof of insurability is required. If your dependent
is hospitalized on the day coverage would begin, medical coverage will
not begin until your dependent is discharged from the hospital. If they
meet the definition of dependent after coverage begins, you must apply
for coverage and agree to pay your share of the required premium for
each dependent. You must apply for Blue Cross/Blue
Shield, and/or Northeast Delta Dental coverage within 20 days of
eligibility. If you do so, coverage will become effective on the date
the dependent becomes eligible. Otherwise, coverage will not begin
until open enrollment, which is the following July 1. With respect to
the BCBS plan, there is one exception to the 20-day enrollment
requirement. Newborn children will be covered for the first 30 days
retroactively as long as the mother is covered on the date of delivery,
even if the enrollment is more than 31 days from the date of birth.
Enrollment must be done within 60 days of birth, or else the child
cannot be added until the next open enrollment. However, if enrollment
of the newborn isn't done as soon as possible after birth (within 30
days) claims for the child might initially be denied and if enrollment
is after 31 days, coverage will not be effective until the first of the
month following enrollment, resulting in a lapse of coverage between the
32nd day and the effective date of coverage.

Who Is Not Eligible?

To determine eligibility you will need to check with the UA Full-Time Collective Bargaining Unit's labor agreement.

Summary
of Benefit Costs for Regular Active Faculty

This is a summary of the benefits for
members of the UA full-time bargaining unit in benefit groups A-F. (See above
for definitions of these groups.) UVM reserves the right to change, amend, or terminate
these benefits at any time. In the event of a discrepancy between what
appears in this handbook and the individual insurance subscriber
certificate, the insurance subscriber certificate of a fully insured
plan will govern. This includes health, dental, life, disability
insurance and the retirement plans.

Health Insurance

Effective Dates of Coverage

For represented faculty, medical insurance will begin on the first day of benefits-eligible service. See the UA Full-Time Collective Bargaining Unit's labor agreement for more details.

Cost of Coverage

Faculty members in groups A-C will be charged a percentage of the full
premium cost based on their base salary. (See current fiscal year
Medical & Dental Costs in the Employee
Information section of the HRS web site.)

Employees with 9, 10, or 11-month
appointments will pay their share of year-round medical insurance
premiums through their regularly-scheduled paychecks. For example, a
9-month faculty member will pay for 12-months of coverage by deductions
from his/her 18 annual paychecks. A 10-month faculty
member will pay for 12 months of coverage by deductions from his/her 20
annual paychecks.

The salary used for figuring the cost of coverage will be the employee’s base
salary as of January 1 of each year and will not be affected by normal salary
changes during the year, unless there is a job or FTE change.

Faculty members in group D will pay the higher of either: a.) the premium cost paid by faculty members in groups A-C, or b.) an inverse percentage of the full cost of providing coverage, based on FTE. (e.g., A 9-month employee working .75 FTE would pay either the same rate as a faculty member in groups A-C or 25% of the full cost of providing coverage—whichever is higher.)

Faculty members in group D may waive coverage
during the waiting period without affecting enrollment at the beginning
of the semester following completion of four semesters in group D.

As a condition of employment, all premium
payments will be made with pretax dollars in accordance with the
provisions of Section 125 of the Internal Revenue Service code.
Exception: Premiums for dependent coverage of a party to a civil union or same-sex marriage will be
made in after-tax dollars in accordance with IRS regulations and
Vermont tax laws. In addition, the value of the
University’s contribution for such dependent coverage will be considered taxable
income to the employee for federal tax purposes (and for state tax
purposes if the same sex spousal equivalent is not a party to a civil
union or same-sex marriage).

The University reserves the right to
select the insurance carrier or administrator for any of these plans
and may change carriers or administrators for such plans at any time,
providing only that the University shall notify United Academics at
least 30 days in advance of such a change. The University also retains
the right to become self-insured provided only that it notifies United
Academics at least 30 days in advance of such a change. The
University shall negotiate with United Academics the impact
on coverage or employee cost of any change in carrier or administrator.

Nothing shall preclude the University from
also adding other health insurance options at any time.

The University, with prior notification of
30 days to United Academics, may modify the details of programs in
effect as of the effective date of the Agreement as long as the
modified programs do not cause any substantial reduction in benefits or
substantial increase in costs to members of the bargaining
unit. Prior to any changes in programs or plans, the
University shall provide specific information regarding the changes in
plan coverage and a summary of the differences. United
Academics retains the right to grieve whether or not the changes are
"substantial."

Because United Academics members
are paying a percentage of premium toward faculty insurance costs, it
is understood that the actual dollars that a faculty member contributes
to premium costs will increase if the cost of the health insurance plan
to the University increases. The percentages for that
contribution, however, shall remain at current levels. It is
also understood that the cost to a faculty member will change if
individual plan selection changes.

It is understood that carriers may on
occasion modify the terms of their policies and plans on their own
initiative and without seeking agreement of the University.
In such cases, faculty members will be subject to any such changes that
carriers may impose. The University shall negotiate with
United Academics the impact on coverage or employee cost of any changes
by the carrier to their policies and plans.

Note:The provisions of the
preceding five paragraphs shall also apply to other benefit plans, such
as group dental, group disability and group life insurance plans.

UVM Open Access Plan

Participants who live in Vermont are required to select a Primary
Care Physician (PCP) from a list of doctors who are in the Blue Card PPO network. Each individual on the plan may select a
different PCP. Individuals may seek medical care from either their PCP
or any other network physician without a
referral. Participants pay $10 per visit to their PCP and $20 per
visit to any other network physician.

Participants who live outside of Vermont are not required to select a PCP, but they too must use the Blue Card PPO Network when seeking care. By using a general practitioner, family practitioner, pediatrician, internal medicine practitioner, naturopath or osteopath who is a member of the PPO Network, you will pay the PCP rate of $10 per visit. Find a PPO Network physician at www.bcbsvt.com/member/MemberBenefits/FindADoctor.html.

You have the option of seeking medical treatment from a network hospital or physician or from a non-network hospital or physician. All
hospitals in Vermont and Dartmouth-Hitchcock Medical Center
in New Hampshire belong to the network, but not all
physicians in this same area belong to the BCBSVT network. When you receive
treatment from an out-of-network hospital or physician the plan covers
70% after a $500 deductible per covered family member ($1,000 family maximum). You
will pay 30% until you have met a $2,500 out-of-pocket maximum ($5,000
family out-of-pocket maximum) after which you will be reimbursed 100%.

You may receive treatment from a network hospital or physician without getting referrals from your PCP and still
receive preferred benefits. Instead of referrals, you need
prior approval when you plan to have one of the 16 specific
procedures or services listed below, whether treated by an in-network
or out-of-network hospital or physicians. If you fail to get
prior approval for a procedure on the list, you may receive
standard benefits or be denied benefits regardless of the medical
necessity of the procedure.

Emergency hospital care has a
$50 co-pay per visit that is waived if followed by
hospitalization. There is a copay of $250 for each
hospitalization with a maximum of three copays per family per plan
year. This copay is for an entire course of treatment; if
one is readmitted to the same hospital for the same diagnosis or
treatment after a discharge within 21 days, there is no additional
copay. Outpatient surgical benefits have a co-pay of $100
and ambulance services have a copay of $50.

One advantage of the BlueCross
BlueShield plan is that you can go to any physician or acute care short-term
general hospital worldwide. However, the plan will pay only reasonable
and customary charges. If the provider does not participate
in the local BlueCross BlueShield plan and the charges are above
reasonable and customary, you must pay the difference.

Mental health and substance abuse (MH/SA) treatment is
provided through a network managed by Magellan Behavioral
Health (MBH). As long as outpatient MH/SA treatment is in-network and pre-certified by MBH,
there is no member cost. Out-of-network treatment for MH/SA requires a 30% copayment after the $500 out-of-network deductible has been satisfied. The maximum benefit for self-referred MH/SA is $3,000
per year, subject to a $10,000 lifetime limit.

Prescription drug
coverage is provided through a pharmacy network managed by Express
Scripts under contract with BCBSVT. After a $100 per person / $300 per
family deductible, the covered member pays $5 per generic prescription,
$20 per preferred brand prescription or $40 per non-preferred brand ($5/20/40). An optional mail-order
prescription drug program through Express Scripts is available for
people who use maintenance drugs. You may purchase a 90-day supply at a
cost equal to two co-pays (i.e., $10/40/80). There is no deductible on
mail-order prescriptions. You may call Express Scripts toll-free
through BCBS Customer Care number at 888-222-7886. Press 1 to reach an
available customer service agent who can help you with placing or
re-filling your prescription, and have your member ID number ready.
Retail and mail-order prescription drug coverage will have an
out-of-pocket maximum of $1,300 for individuals and $3,800 for family
coverage.

Limited coverage for routine vision
examinations is provided by Vision
Services Plan (VSP). Those who identify themselves as a
member of the BCBSVT UVM Open Access Plan are covered for one
routine vision exam per year with a $20 co-payment. Lenses, frames, and
contact lenses are not covered under this plan.

Waiver of Medical Coverage

The State of Vermont has established the Catamount Health Plan
for individuals who are not covered by their employer. A provision
requires annual certification of coverage when an employee waives
medical insurance coverage. Beginning July 1, 2007, if you elect to
waive medical insurance coverage, you are required to complete an
annual written certification form attesting that you are covered with
two-person or family coverage by your spouse or civil union partner.
Certification must be returned to the Human Resource Services, 228
Waterman Building. Failure to provide annual certification will make
you ineligible for the waiver payment described below.

UVM offers an annual $1,000 payment in lieu of medical
coverage. This option is available to any full-time employee with
two-person or family coverage who certifies that they and their
dependents are covered by non-UVM group medical insurance. This option
is not available to employees whose spouses or civil union partners
also work at UVM nor is it available to former employees retired from
UVM with post-retirement benefits, or their spouses or civil union
partners. Further, it is not available if
you waive coverage for your eligible dependents but not for yourself.

The $1,000 is a payment, subject to withholding taxes, spread
throughout the year based on the number of paychecks you receive during
the year. All or part of the waiver payment can be converted to pretax
dollars if you enroll in a Flexible
Spending Account.

If you lose your other insurance coverage by an event outside
your control, you are allowed back into a UVM medical coverage option.
You will be entitled to only a prorated portion of the $1,000 based on
the length of time (in whole months) your coverage was waived. If you
waived coverage for yourself and your dependents, you may come back
into the UVM plan if your spouse or civil union partner loses
employment, or if you lose coverage because of divorce or your spouse
or civil union partner's death . You may not come back into a UVM
plan simply because your spouse or civil union partner's employer
increases premiums or decreases coverage until your next year's Open
Enrollment period.

Termination of Coverage

Coverage will end on the date you terminate employment, i.e.,
your last day worked. If you are paid for accumulated vacation at
termination, coverage will be extended one calendar day for each
vacation day paid, up to a maximum of 30 days. When coverage
terminates, you will be offered the option of extending coverage under COBRA.

A dependent's coverage will end when s/he no longer meets the
definition of dependent under the plan. When coverage terminates,
former dependents will be offered the option of extending coverage
under COBRA.

Dental
Insurance

The University provides two dental
insurance plans insured by Northeast
Delta Dental: a Base Plan and a High Option Plan. UVM pays
the entire cost of coverage for you and your dependents if you are
employed in benefit groups A, B, or C for the Base Dental Plan. If you
are employed in benefit group D, the cost of coverage is
prorated between you and UVM, with UVM's contribution determined according to
your FTE, and the coverage is year round. If you select the High Option Plan, you pay the cost
difference between the Base and High Option Plans.

All premiums are paid in pretax dollars as
allowed under Section 125 of the IRS code. Exception: Premiums for
coverage of civil union partners will be made in after-tax dollars in
accordance with IRS regulations and guidelines.

When Does Coverage
Begin?

Dental insurance is provided six months after the
date of hire for employees in groups A, B, and C. It is offered to
employees in group D four
consecutive semesters after the date of hire.
You may not purchase dental coverage individually before the end of the
waiting period.

What
Is Covered Under The Base Plan?

The base dental plan covers reasonable and
customary charges incurred for medically necessary dental services and
supplies when they are performed or prescribed by a licensed dentist.
There is a $25 deductible per person or a maximum deductible of $75 per
family each calendar year. After the deductible, preventive expenses
will be paid at 100%, minor restorative expenses will be paid at 80%,
and expenses for major restorative procedures such as bridgework and
dentures are paid at 50%. The annual maximum dental coverage for
individuals is $750. There is a lifetime maximum of $500 for
orthodontics. The Dental Plan booklet, available from Human Resource
Services (228 Waterman or 656-3322), details the percentages paid for
treatment.

What
Is Covered Under The High Option Plan?

The High Option Plan is the same as the
Base Plan except the deductible does not apply to Coverage A (see
table); Coverage C is paid at 60%, not 50%; the Annual Limit is
increased from $750 to $1,500 and the Coverage D Lifetime Limit is
increased from $500 to $1,000.

The
following table compares the two plans:

Base

High
Option

Coverage A
(Preventive)

100%

100%

Coverage B
(Minor Restorative)

80%

80%

Coverage C
(Major Restorative)

50%

60%

Deductible/person/calendar
year

$25

$25

Deductible/family/calendar
year

$75

$75

Deductible
applied to Coverage A

Yes

No

Maximum/person/calendar
year for service under A, B & C

$750

$1,500

Coverage D
(orthodontics)

50%

50%

Orthodontics
lifetime maximum per person

$500

$1,000

Enrollment

Enrollment is not automatic. You must
enroll within 20 days of your initial eligibility period or wait until
the next Open Enrollment period in May of each year with coverage to
become effective the following July 1. Dependents must be enrolled
within 20 days of the initial eligibility. If they are not enrolled at
this time, they may only be later enrolled during the annual Open
Enrollment. Normally, full-time employees will enroll at the initial
benefits orientation.

Pretreatment
Authorization

To ensure proper coverage, when a dental
fee is expected to be $300 or more, pretreatment authorization should
be requested by your dentist before any of the work is begun. (Such
pre-authorization is not required in an emergency. Do not hesitate to
seek treatment in an emergency.)

Pretreatment authorization protects you.
It allows you to learn if the dental procedure is covered by your
insurance and how much will be paid by the plan before committing to
treatment. The pretreatment authorization form is the same as the
regular claim form. It must be completed and sent to Northeast Delta
Dental by your attending dentist. Once it has been reviewed and
approved, copies explaining covered services and the dollar value of
insurance coverage will be sent to your dentist.

Termination of
Coverage

Coverage will end on the date you
terminate employment, i.e. on the last day worked. If you are paid for
accumulated vacation at termination, coverage will be extended one
calendar day for each vacation day paid, up to a maximum of 30 days.
When coverage terminates, you will be offered the option of extending
coverage under COBRA.

Dependents' coverage will end when they no
longer meet the definition of dependent under the plan. When coverage
terminates, former dependents will be offered the option of extending
coverage under COBRA.

Retirement and Disability

Check the UA Full-Time Collective Bargaining Unit's labor agreement for more information on faculty benefits related to retirement and disability.

Death

Check the UA Full-Time Collective Bargaining Unit's labor agreement for more information on faculty benefits in the event of death.

Sabbatical/Professional
Development Leave

Check the UA Full-Time Collective Bargaining Unit's labor agreement for more information on faculty benefits related to sabbatical/professional development leave.

UVM is subject to the requirements of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). This
law allows qualified beneficiaries to continue medical and dental
insurance coverage if a qualifying event occurs. Coverage can continue
for either 18 or 36 months depending upon the qualifying event. Those
who choose to extend coverage may be charged up to 102% of the premium
for that coverage. A qualified beneficiary is a spouse, civil union
partner or dependent child covered by UVM's medical or dental plan or
an employee who loses medical or dental coverage due to termination or
a reduction in hours. A qualifying event is any event that, prior to
this law, would cause a qualified beneficiary to lose medical or dental
coverage. Qualifying events include:

the death of a covered employee.

divorce or legal separation of a covered employee and
spouse or dissolution of a civil union.

termination or reduction of hours of a covered employee
(termination due to an employee's gross misconduct is not considered a
"qualifying event").

retirement of an employee

a dependent child who ceases to qualify as a dependent
under the terms of the plan.

If a "qualifying event"occurs, qualified beneficiaries will be able to
continue coverage under UVM's medical, dental or flexible spending plan
for up to 36 months, unless the qualifying event is the employee's
termination or reduction in hours, in which case coverage can be
continued for up to 18 months. A "subsequent qualifying event" may
extend COBRA eligibility for up to 36 months from the original
"qualifying event."

Coverage can be terminated prior to the 18
or 36 months under certain circumstances which include the date upon
which:

the employer terminates the plan for all employees.

a covered beneficiary is or becomes a covered employee
under any other group medical, dental or flexible spending plan.

a covered beneficiary remarries and becomes covered by
any other group medical,dental or flexible spending plan.

coverage ceases due to nonpayment of a premium by a
"qualified beneficiary."

The covered beneficiary becomes eligible for Medicare.
However, if the
Social Security Administration determines that the Covered Person was
disabled at any time during the first 60 days of continuation coverage,
then the required continuation coverage period is extended from 18
months to 29 months. In order to be eligible for this
extension,
the Covered Person must notify Human Resource Services within 60 days
from the date the Social Security Administration makes the
determination that s/he is disabled. The extended coverage
for
disabled individuals will end earlier than the 29 months if Social
Security determines that s/he is no longer disabled. The Covered Person
must notify Human Resource Services within 20 days of the
date
Social Security determines that s/he is no longer disabled.
The
disabled individual may be charged 150% of the cost of the coverage for
the coverage beyond 18 months.

Exception to 2 and 3 above: if there is a waiting period or preexisting
condition exclusion in the new plan, COBRA coverage may be continued.
COBRA coverage, however, will be secondary to all other coverage for
non-excluded conditions.

Notification Requirement

Within 60 days of a qualifying event,
qualified beneficiaries must inform Human Resource Services (656-3150).
Human Resource Services will notify the qualified beneficiaries of
their rights under the continued coverage provision within 14 days of
receiving this information. Within 60 days of receiving this notice or
on the date medical or dental care coverage would otherwise terminate,
whichever is later, the qualified beneficiaries must notify Human
Resources/Benefits of the decision to continue coverage. Payment of the
first quarterly premium must be received by Human Resource Services
(228 Waterman) within 45 days of the decision to continue coverage.

All premiums are payable in advance. There
will be a 30-day grace period for payment of premiums. If a premium
payment other than the initial premium is not received before the
expiration of the grace period, coverage will automatically terminate
retroactively to the due date. Insurance which is so terminated may not
be reinstated.

Flexible
Spending Account

The Flexible Spending Account program
allows you to reduce your earnings by a fixed amount determined by you
each year. To be eligible for participation, you must be employed in at
least a nine-month position of at least 50% FTE. You may reduce
earnings up to $5,000 per year to pay for un-reimbursed medical/dental
expenses, and up to $5,000 into an account to pay for dependent care.
Your dependent care account may be used for child care, elder care, or
the care of a disabled spouse. The money you set aside is placed in a
Flexible Spending Account, designed to shelter some of your earnings in
order to pay for certain medical and day care expenses tax-free.

The money you deposit in your Flexible
Spending Account is not taxed. That could mean a substantial tax saving
for you, reducing your costs for dependent care, dental, medical, or
vision expenses. In the lowest tax bracket, for example, an estimated
25% of the deposited amount can be saved in taxes when you plan your
account carefully. It is important to read the Flexible Spending
Account booklet before signing a salary reduction agreement. The
booklet is provided to you at Orientation or if requested during Open
Enrollment in November.

There are restrictions to consider when
setting up your Flexible Spending Account. Federal requirements state
that dependent care expenses must be allocated as such when you start
your Flexible Spending Account. You cannot subsequently shift them to
medical expenses or vice versa. And if you are considering an account
for dependent care expenses, it may eliminate your ability to use the
dependent care tax credit when you file your federal income tax return.
In some cases, the tax credit could be more valuable than a Flex
Account. Review this with your tax advisor before you enroll in a
Flexible Spending Account.

You must incur your expenses for services
rendered in the tax year in which your Flexible Spending Account is
established. If expenses are not incurred, the money in your account
cannot be returned to you.

If your employment terminates or your
employment status changes and you are no longer contributing to your
medical reimbursement Flexible Spending Account, your account will be
capped at the amount of your contributions and you will not be able to
submit expenses which are incurred after your contributions cease
unless you elect to exercise COBRA rights as applied to medical, dental and COBRA flexible spending
accounts.

To get detailed information about a
Flexible spending account, check out the Employee
Information area of the HRS web site or contact Human
Resource Services at 656-3150.

Group
Life Insurance

Group Life Insurance is currently provided
by The Standard Insurance. If you are employed in benefit
groups A, B, C, or D, the University offers several options for group
term life insurance coverage. If you are employed in benefit group D,
you must wait one (1) year before you are eligible for the coverage.

When you enroll in the life insurance
program, you name a beneficiary who will receive the payments on your
death. This beneficiary is not affected by a last will or any changes
in your marital status. Therefore, you should periodically review your
beneficiary designation to be sure it is current.

There are several coverage options as
follows

$6,000

$50,000

2 times annual base salary

3 to 7 times annual base salary

1. $6,000
If you want only minimum coverage, you may choose $6,000 term life
insurance paid by the University.

2.
$50,000
If you would like the maximum tax-free insurance available under the
law, you may choose this option. UVM will pay for the first $17,000 of
coverage and you will pay for the remaining $33,000 of this coverage.
Premiums for this coverage are the same regardless of age. If you
remain employed by UVM, this coverage is reduced by 33% at age 65, 55%
at age 70, and 70% at age 75, with a minimum benefit of $6,000. If you
have a salary under $25,000, you may choose this option, but use
caution. Your health may change between the time you choose your life
insurance coverage and the time your salary is more than $25,000. If
this should happen, you may not qualify for increased coverage options
since good health must be proved to the insurer's satisfaction or
increased coverage will be denied.

3.
2 Times Annual Base Salary
If you elect coverage at 2 times annual base salary, UVM will pay for
the first $6,000 and 25% of the remainder, up to a total of $50,000. In
addition to contributing to a portion of the first $50,000 of coverage,
you will pay the full cost of all coverage over $50,000. Premiums for
this coverage are the same regardless of age. Note: The cost
of the first $50,000 of coverage is the same under this option as under
the previous option.

4.
3 to 7 Times Annual Base Salary
If you elect coverage at 3,4,5,6, or 7 times annual base salary, the
University will contribute the same as if you had elected 2 times
salary of coverage. You will pay the amount you would have paid for 2
times salary plus the full cost of all additional coverage based on an
age rated premium.

All coverage for active employees includes
accidental death and dismemberment (AD&D) benefits as well as
disability waiver of premium coverage. This coverage corresponds to the
amount of coverage elected and is not optional.

Under the AD&D provision, the
coverage is doubled in the event of an accidental death. It is tripled
in the event of an accidental death while a fare paying passenger in a
public conveyance. In addition, should you lose 2 or more limbs or eyes
as the result of an accidental injury, the plan will pay you the full
insured amount. It pays half the insured amount in the event of the
loss of one limb or eye as the result of an accidental injury.

Under the waiver of premium provision, the
insurance carrier will waive premium payments for you after you have
been totally disabled for at least 6 months and you provide proof
satisfactory to The Standard Insurance that you satisfy the definition
of disability in the policy.

Contact Human Resource Services at
656-3150 for current premium rates. These rates are subject to change.
In addition, coverage will be reduced on the next January 1 following
ages 65, 70, and 75 as follows:

Age

% of
under age 65 coverage

65-69

67%

70-74

45%

over 75

30%

You must enroll in the Group Life Insurance plan within 20 days of your
initial eligibility date. Otherwise, you must submit proof of
insurability to the insurance carrier before increased coverage can
begin. In addition, if you are a new employee, you will be required to
provide proof of insurability if you elect coverage in excess of two
(2) times salary. You will also be asked to provide proof of
insurability on your spouse if you elect spousal coverage which will
exceed $50,000.

These life insurance options are based on
annual straight-time earnings. Your coverage becomes effective on the
date of employment or the date on which your enrollment application is
complete, whichever is later. Optional coverage of up to two times
salary must be elected within 20 days of employment, otherwise it is
subject to proof of insurability. Coverage in excess of two times
salary requires proof of insurability. Your coverage ends on the last
day you work at the University.

If you have chosen a level of insurance
that is less than the maximum coverage allowed, you may apply to
increase the amount of your coverage at a later date. The insurance
company will require you to furnish proof of insurability at your own
expense if you change coverage at any time after 20 days of employment.

Insurance coverage for choices 2, 3 and 4
are adjusted annually to reflect salary increases or decreases and age
changes on January 1.

When your full-time equivalency is reduced
by your employer for a period of not more than four months, your life
insurance coverage is not affected. If you request a temporary
reduction (up to four months) of your FTE to as little as 75% of your
full-time position, you will remain eligible for life insurance
coverage. However, the amount of your coverage will be reduced based on
your lower salary if such lower salary is in effect on January 1.

Imputed
Income

If you purchase optional life insurance
through the University's group term life policy, you may be required to
pay taxes on "imputed income" due to the favorable rates offered by the
insurance carrier. Under federal law, the maximum amount of tax-free
insurance provided by an employer is $50,000. The premium cost for the
first $50,000 will automatically be converted to pretax dollars under a
Section 125 premium conversion account.

To comply with federal requirements, the
University must calculate imputed income on group-term life insurance
on a monthly basis and automatically withhold the required taxes for
affected employees. Taxes are withheld once each month.

If either of the following two conditions
apply to you, the University will calculate and report "imputed income"
and withhold taxes:

Employees aged 45 or older who purchase group life
insurance for themselves to the extent exceeding $50,000 of University
insurance. Imputed income will not apply, however, to any portion of
optional insurance above two times salary (i.e., 3 - 7 times salary).

Employees who purchase group term life insurance for their
spouses or dependent children.

In most cases, we anticipate that imputed income and tax withholding
will be relatively small, except in cases where older and/or highly
compensated individuals have elected high coverage. While this imputed
income may increase your tax withholding, there is still value in this
benefit offered through the insurance carrier. We encourage you to
compare the cost of obtaining such insurance in the marketplace.

Dependent
Life Insurance

Spouse Coverage

If you have elected more than $6,000 in
coverage, you may also elect to insure your spouse. There are 2 spousal
insurance options as follows:

$20,000

1/2 of the amount of coverage on yourself

You must pay the full cost of this coverage based on the age-rated
schedule. Premium rates may be obtained from the Employee Information Center at 656-3150. This coverage does not include AD&D and disability
waiver of premium coverage although disability waiver of premium
benefits under your coverage includes waiver of dependent life
insurance premiums if you become disabled.

Note: If you are eligible for coverage as
an employee or retiree and your spouse is eligible for group life
insurance, you cannot also be covered as a spouse.

Dependent Children Coverage

If you have dependent children you may
also insure them in the amount of $10,000 each if you have elected the
optional coverage for yourself. Coverage must be elected within 20 days
of initial eligibility. Otherwise, proof of insurability is required.
If this coverage is elected, all eligible children will be covered.
Coverage for newborn children begins at age 14 days.

The cost of this coverage is $.26 per
child per month as of 1/1/00 and is subject to change.

Life Insurance Coverage on
Retirement or Disability

Upon retirement at UVM or in the case of
an award of disability benefit, your life insurance coverage will be
affected by the following conditions:

If you retire without disability benefits
between ages 55 and 64 and qualify for the post-retirement benefits plan,
in benefit group A, B, C, or D, you will receive life insurance
coverage based on the option selected prior to retirement. If you
elected 2-7 times salary, you will receive the lesser of two times
salary or $50,000. If you elected $6,000 or $50,000, you will receive
that amount. All dependent coverage will end at retirement. At age 65,
life insurance coverage will be reduced by 50% up to a maximum of
$25,000 and a minimum of $6,000. When you reach age 70, all life
insurance will end.

If you retire between ages 65-69 and qualify for benefits,
you will receive 1/2 of benefits as described previously subject to a
maximum of $25,000 and minimum of $6,000.

If you retire after age 70, all employee and dependent
life insurance ends.

If you retire because of an award of benefits for a total
and permanent disability, the insurance carrier will continue to pay
the entire life insurance premium as long as you remain disabled and as
long as the disability lasts at least six months and is certified by
the insurance carrier. You will be required to provide subsequent proof
of disability every twelve months for the duration of your disability.
Coverage continues for life, but reduces by the same percentage as for
active employees. Premiums for dependent coverage are also continued
under the waiver of premium provision.

If you retire or if coverage is continued due to an award
of disability benefits, the accidental death and dismemberment
provision will terminate.

All dependent coverage will end at retirement. When you
reach age 70, all life insurance ends.

Conversion to Individual Insurance Coverage

When your life insurance or your
dependents' coverage is reduced or terminated, you may be able to
convert the amount of group coverage being dropped to an individual
policy. The cost is considerably higher, but you do not have to provide
evidence of insurability if the conversion is made within 20 days of
reduction or termination. Conversion forms are available from Human
Resource Services (228 Waterman).

Re-Employment

Check the UA Full-Time Collective Bargaining Unit's labor agreement for more information on faculty benefits at time of re-employment.

Transitional Benefits for your
Beneficiary

If you die while actively employed at UVM,
the University will pay your estate for accrued and unused vacation up
to two times the annual accrual rate or 44 days, whichever is less. In
addition, a payment equal to 10 workdays' pay will be made to your
estate along with your regular compensation.

Disability
Benefits

There are two separate programs which protect you from loss of
income as a result of a disability that prevents you from continuing to
perform the duties of the position you hold.

Short-term
coverage is provided by medical leave during the first six months of
disability for faculty with more than one year of service.
Short-term coverage is one month of medical leave for those with less
than one year of service.

Long-term coverage is a group disability
policy, providing benefits beginning six
months after the date of total or partial disability.

Neither plan covers disabilities lasting
less than six months. Coverage from both plans is only for active
employees and ceases when employment is terminated.

Long-Term
Coverage

Long-term disability insurance coverage is
available to you and you must pay a part of the insurance premium to
receive it. This coverage provides you with a monthly income six months
after you become totally disabled or cannot perform essential duties of
your normal University position due to illness, bodily injury, or other
disabling circumstance. You may also qualify for partial disability
payments when you are physically capable of working part-time. After 30
months of disability, you will continue to qualify for benefits only if
you are unable to perform any occupation for which you are reasonably
suited by education, training, or experience due to sickness, bodily
injury or other disabling circumstance.

To
participate, you must complete one year of regular UVM employment and
be an employee in benefit groups A, B, or C. You may qualify for
immediate participation in the UVM Group Disability plan if:

You are a new faculty member and were insured within the 3
months prior to your UVM employment under a group long-term disability
policy that provided income benefits for at least five years; or

You are a former UVM employee returning within 1
year.

When you attend the new employee benefits orientation during on the
first day of your employment at UVM, you will actually sign up for the
plan. Before your first anniversary, you will receive notice from Human
Resource Services that you will begin group long-term disability plan
commencing on your first anniversary of employment, unless you
specifically request no coverage. If you do not enroll within 20 days
of becoming eligible, you must provide proof of insurability in order
to enroll.

You may choose between two levels of
benefits:

1.
Basic Coverage

You may choose basic coverage for 60% of salary with a $10,000 monthly
maximum. This is financed by a 30% employee contribution and a 70%
University contribution to the total cost of coverage.

2.
Optional Coverage

You may choose coverage for 70% of your salary with a monthly maximum
of $11,667. You will be required to pay the difference between this
option and the cost of basic coverage in addition to the premium as
described previously.

Under the plan, monthly disability
payments will be reduced by the amounts of your Workers' Compensation
and family Social Security disability payments. The total amount of
compensation from all sources will be 60-70% of your monthly salary,
depending on the option you select. Your total monthly benefit will not
exceed $10,000 or $11,667 depending on whether or not optional coverage
is in effect. The insurance carrier monthly benefit will never be less
than $100 or 10% of the benefit amount, whichever is greater, even if
this amount may bring the total disability income to more than the
guaranteed benefit.

Payments begin on the first of the month
after you have been totally disabled for six months. After 42 months of
continuous disability, monthly benefits will be increased 3% annually
or by the Consumer Price Index (CPI) if lower.

If you become totally disabled before age
60, your disability payments will continue until your disability ceases
or until you reach age 65, whichever is first. If your disability
occurs after age 60 but before age 65, you will receive benefits until
the disability ends, or for five years from the
date of disability. If your disability occurs after age 65
but before age sixty-nine-and-a-half, you will receive benefits until the disability
ends or age 70, whichever is first. If your disability takes place
after age 69, benefits will be paid for one (1) year.

Disability
and Your Retirement Plan

You must be enrolled in the UVM Retirement
Plan and eligible for UVM contributions before you become disabled to
be eligible for retirement protection payments. If you have
retirement protection, regardless of which option you choose [60% or
70%], the insurance carrier will automatically continue to pay into
your retirement plan. The amount will be equal to 13% for faculty of
the rate of your monthly straight-time pay as of the date of your
disability.

Beginning 42 months after the date of your
disability, your retirement contributions will be increased by 3%
annually or the CPI if less. Your retirement benefits may begin at your
option once your disability benefits cease.

Special Note: If you
are enrolled in the Prudential or Fidelity retirement plans on the date
of your disability, you will be eligible to receive continuing
retirement contributions. However, you will need to enroll in a
TIAA/CREF annuity account.

Disability
and Your Social Security Benefits

If you become disabled, you must apply for
Social Security disability (SSDI) benefits and Medicare Parts A and B
immediately. Medicare becomes effective after you have been receiving
Social Security disability payments for 24 months.

If you are over 65 and become totally
disabled, you must apply for Social Security retirement benefits and
Medicare Parts A and B. The amount of your long-term disability
payments will be reduced by Social Security whether applied for or not.

You are not required to apply for early
retirement benefits (i.e., prior to age 65) from Social Security, and
in fact, we would recommend that you do not. If you do apply for them,
your disability benefits will be reduced in direct proportion to your
Social Security benefits.

Insurance
Benefits During Disability

When you are totally disabled and receive
benefits from either the group long-term disability policy or Social
Security disability, medical and dental insurance is paid by the
University at the rates stipulated by the UA Full-Time Collective Bargaining Agreement. UVM
reserves the right to require additional proof of a qualifying
disability.

Group life insurance premiums may qualify
for the waiver of payment for insured employees who become totally and
permanently disabled while working at UVM.

If you die while receiving disability
benefits, your spouse and dependent children are covered by medical and
dental insurance plans as provided for by the UA Full-Time Collective Bargaining Agreement.

Your
Medical Insurance Coverage During Disability

Medical insurance continues until you and
your dependents become eligible for Medicare. Coverage options will be
the same options offered to active employees.

If you become eligible for Medicare while
disabled, you must enroll in and pay for parts A and B, and UVM will
provide the Medicare Carve-Out Plan as described for
retirees. If one of your dependents becomes eligible for
Medicare, he or she must enroll in parts A and B. The University will
not reimburse you for the cost of Medicare Part B.

You will be required to pay a portion of
the premium for medical and dental coverage based on the UA Full-Time Collective Bargaining Agreement.

Group
Life Insurance During Disability

If you receive benefits for a permanent
and total disability, your life insurance may be continued at the face
value in effect on the date of receipt of disability benefits if the
insurer approves a waiver of premiums. Coverage will continue for life,
or until your disability benefits cease. At age 65, however, the face
value of your coverage is reduced by 33%, by 55% at age 70 and by 70%
at age 75. Life insurance coverage will not be less than $6,000.

If you had dependent coverage at the time
of receipt of disability benefits, premiums will be waived for their
coverage if your premiums are waived.

Accidental death and dismemberment
insurance coverage ends when you retire due to disability, no matter
what your age.

The
UVM Retirement Savings Plan

The University of Vermont helps you plan
for a secure retirement by offering a program to save and invest
through the 403(b) retirement savings plan.

Eligibility
requirements are as follows:

An instructor, lecturer or research associate must be
employed at 75% FTE or greater for four semesters in order
to qualify for a UVM contribution equal to 10% of base salary to the
retirement savings plan. Note: The four semesters of employment waiting period for represented faculty of a rank less than assistant
professor may be waived if s/he has a vested interest in the retirement plan of his or her immediate
past employer and that employer is a non-profit or governmental
employer, or if the individual is a former UVM employee who had at least three years of benefits-eligible service and who is returning to the Bargaining Unit position within two years after the original termination.

An officer of extension, who is not eligible for Federal
benefits, an officer of instruction, an officer of research, or an
officer of libraries, with an academic rank of assistant
professor or greater, is eligible to participate and receive a
UVM contribution of 10% of base salary as long as he or she
enrolls and makes the minimum contribution of 3% of base salary.

A tenured faculty member in benefits groups A-D must participate.

You may begin your retirement savings plan
immediately upon employment by contributing the minimum amount required
by the plan and by choosing the kind of investment you would like to
make. The University will make a
contribution equal to 10% of base salary once you are enrolled and meet
the eligibility requirements at the time each payroll is processed. .
Your taxes will be deferred on your contributions. As soon as you begin
making your contributions to the retirement plan, they are immediately
vested. You own them and you have a non-forfeitable right to their
current value, even if you decide to leave UVM before
retirement.

When you retire, these contributions and
any earnings may be withdrawn in cash (except TIAA's traditional
annuity) or they may be used to purchase a guaranteed or variable
annuity, no matter which investment option you choose.

After you retire or your employment
terminates, if you opt to withdraw cash rather than an annuity prior to
reaching age 59-1/2, it will be subject to IRS penalties.

Even if you are not yet eligible for
University contributions, you may enroll at any time before you become
eligible for UVM's contribution. The University's contribution will
begin automatically in those instances at the time you become
eligible.

If you fail to enroll when you first
become eligible for University contributions, you may enroll at any
time thereafter, but the University contribution will not be
retroactive.

Beginning January 1, 2002,
contribution limits to the retirement plan were simplified.
Participants may contribute to the plan a dollar amount up to 100% of
their compensation minus their benefit costs (e.g., FICA and Medicare
taxes, health and dental deductions, etc.) to a limit of $16,500 in
calendar year 2009. Reduction forms should be submitted annually
(ideally in January) in order to obtain the maximum contribution over the greatest number of payrolls.

Participants who wish to
contribute more than the elected deferral amount (see above) have two
programs they can use:

Special §403 Years of Service catch-up and

Age 50+ catch-up.

Reduction forms for the
catch-up options should also be submitted annually (ideally in January)
in order to obtain the maximum contribution.

The Special §403 years of
service catch-up option is only available to of those employees with 15
or more years-of-service with UVM. You must have fifteen years of
full-time equivalent service with UVM and your elective deferrals
cannot average more than $5,000 per year of credited service. Under
this Special §403 years of service catch-up you would be eligible for
the least of the following: $3,000 annual or $15,000 lifetime catch-up
amount. The Special §403 years of service catch-up calculation (the old
MEA) must accompany each reductions form.

To be eligible for the Age 50+ catch-up contributions in a
calendar year, you must be at least age 50 by December 31 of that year,
must have elected to defer the maximum regular reductions as adjusted
for cost-of-living, and must not be eligible for Special Section 403(b)
years of service catch-up. Age 50+ catch-up is limited to $5,500 for
2009.

You can use both the Special §403 years of service catch-up
and the Age 50+ catch-up option during the same year, but you must use
the ordering rule; you must apply all catch-up to Special §403 years of
service rule first, then apply any excess contributions to Age 50+
catch-up.

The overall employer-employee contribution (including any
catch-up options) combined limit per year is $49,000 for 2009, not to
exceed 100% of compensation, minus benefit costs.

If you come to the
University from another nonprofit organization and you enroll in the
University's retirement plan upon employment, contributions to a 403(b)
plan through that other employer's plan during that initial calendar
year will be combined with UVM's when determining your maximum
contributions for that year. The sum of such contributions cannot
exceed $16,500 in 2009 if you are 49 years of age or less or $22,000 in
2009 if your are 50 years of age or more, subject to change annually in
accordance with IRS regulations.

Investment
Alternatives

The University offers a wide variety of
investment alternatives which provide flexibility for risk, growth, or
security. This is a summary of the main investment groups available.

TIAA/CREF

TIAA-CREF is the Teacher's Insurance and Annuity Associantion and College Retirement Equities Funds. Contributions made to TIAA's Traditional
Annuity purchase a definite amount of future retirement income. In the
Traditional Annuity, the principal is guaranteed and TIAA will pay
interest on that principal. The interest rate is variable and is
declared several times a year. TIAA invests almost exclusively in fixed
dollar obligations made up of a broadly diversified group of bonds and
mortgages. On retirement, if you annuitize your account, TIAA issues a
check on a regular schedule for as long as you live. The dollar amount
is stable, and you will receive a dividend as it is declared from time
to time.

CREF and TIAA Real Estate Portfolio offer
several different variable annuities as investment alternatives. CREF
and TIAA Real Estate Portfolio differ from TIAA Traditional Annuity in
that they do not offer a guaranteed annuity, but are designed instead
to provide equity, bond and real estate investments as alternatives.
CREF contributions buy accumulation units that are shares of ownership
in broadly diversified investment portfolios including Stock, Bond,
Social Choice, Global Equities, Equity Index, Money Market, and TIAA
Real Estate Portfolio each with its own investment
objectives. The dividends and other earnings are reinvested
to buy additional accumulation units. On retirement, you receive an
amount equal to the current value of a certain number of annuity units.
You may transfer previous contributions to CREF from your TIAA
Traditional Annuity but you must only do so over a period of
10 years.

Group Supplemental Retirement Annuities
(GSRA)
Contributions may be directed to either a Retirement Annuity (RA) or a
Group Supplemental Retirement Annuity (GSRA).

The GSRA has the same investment
alternatives as the RA, with three exceptions:

The Traditional Annuity under the GSRA is fully
transferable within the Retirement Savings Plan, whereas, under the RA
it can only be transferred over a 10-year period.

The GSRA has a loan provision that will allow you to
borrow up to 45% of the value of the account.

The Traditional Annuity investment alternative pays 1%
less in interest.

Fidelity Group

Fidelity Investments is currently among
the largest managers of mutual funds in the country. Investors may
choose from a wide variety of mutual funds, each with different
strategies and corresponding results. Shares may be purchased in one or
a combination of funds that invest in a diversified pool of securities.
These range from very conservative U.S. government money market funds
to highly speculative ones. In addition to its own funds, Fidelity
offers a family of socially conscious mutual funds offered through the
Calvert Group.

The Calvert Group

The Calvert Group (contributions
administered through Fidelity) is a mutual fund manager offering funds
ranging from money market accounts and government-backed securities to
common stocks and corporate bonds as well as several socially and
environmentally responsible investment opportunities which screen
investments for social impact as well as for financial soundness.
Social criteria include equal opportunity, environmental
responsibility, occupational health and safety, and fair labor
practices. The fund also avoids investments in weapons system
manufacturers and nuclear power.

Prudential Financial
Services

Prudential Financial Service’s MEDLEY Program is a
combination of a fixed annuity, several equity funds, and a money
market account. The fixed annuity guarantees principal and provides a
lifetime income after retirement. Its equity funds are somewhat
riskier, and the money market account does not guarantee any particular
rate of return. Any percentage of an employee’s total annual
contribution may be invested in one or more of the MEDLEY
programs.

As with the GSRA offered by TIAA-CREF,
Prudential offers a loan provision. However, only your contributions
and the earnings on those contributions are eligible to be borrowed
against.

Enrollment

Enrollment in the UVM Retirement Savings
Plan is voluntary and can be done at any time. Monthly workshops are offered to help individuals understand the Plan. During
this orientation, the enrollment options are explained and you will be
provided assistance in enrolling in the plan. Please check Retirement
Sessions Schedule for dates and times.

It is your responsibility to contact Human
Resource Services to actually enroll in the plan. To enroll, you decide
the amount you wish to defer for tax purposes and choose how the
contributions will be invested. A beneficiary must be chosen to receive
the value of your account if you die. If you decide to enroll in the
plan after your four semesters have passed (or your
employment date if you qualify for waiver of the waiting period), UVM
will contribute 10% of your base salary to the plan, beginning
with the next payroll following receipt of your enrollment forms. UVM's
contributions are not retroactive.

Restrictions
to the Retirement Plan

There are certain restrictions to the UVM
Retirement Plan. Once the University has begun to make contributions
toward your fund, you may not reduce your own contributions below
the 3% minimum contribution level for faculty
unless such contributions exceed your annual maximum. You cannot drop
out of the program after University contributions have begun. Further,
UVM contributions toward your retirement plan cannot be withdrawn while
you are an employee here, nor can you borrow against them. Withdrawal
of your own personal contributions is subject to IRS restrictions and
penalties. In the case of severe financial hardship, your contribution
(not UVM's) may be withdrawn prior to reaching age 59-1/2. You will be
required to pay the IRS a 10% tax penalty and 20% of your funds will be
withheld for estimated income tax purposes.

Loans

Currently you can borrow from your
contributions (not UVM's) if your retirement plan is invested with
Prudential or TIAA's GSRA. For details and current rates, contact each
company. TIAA can be reached at 1-800-842-2776 and Prudential can be
reached at 1-800-458-6333.

Tax-Deferral

You may defer taxes on your contributions
to the Retirement Savings Plan by signing a "Salary
Reduction/Investment Agreement" in which you agree to have your pay
reduced by the amount you contribute to the plan. This option is
valuable because salary after the reduction determines the amount of
federal and state income taxes you pay. Other benefits like life
insurance, disability insurance and Social Security are calculated on
full base pay and are not reduced, no matter how much is contributed to
the retirement plan. You may increase or decrease your retirement plan
contribution as often as you wish as long as it goes no lower than 3%
for faculty and does not exceed your annual contribution limits.

Upon Retirement

When you retire, you may select from a
wide range of distribution options with payment plans that suit your
personal needs. A joint life annuity, for example, guarantees income
for you and your spouse for as long as you or your spouse live. A
single life annuity guarantees a lifetime income for you alone. Or you
can elect a periodic distribution plan in which you ask the company
with your retirement plan account to distribute a certain amount
periodically. These options are not chosen until you retire.

Termination

Your contributions and UVM's contributions
are immediately owned by you, even if you leave UVM. Upon termination
of employment, you may choose to cash in your account or roll over the
proceeds, tax-free, to an IRA. If you allow the account to remain
inactive you will not be able to add new funds to it unless it is a
TIAA-CREF IRA and you become employed by another educational employer
who participates with TIAA-CREF but you will still participate in any
investment gains or losses and continue to transfer among funds as long
as you remain a participant. UVM's contributions stop on your
termination date. Under current rules, if cash withdrawal is done
before age 59-1/2, in addition to income taxes, the IRS assesses a 10%
tax penalty.

Military Service

Former employees who return to UVM after
leaving to fulfill their military service requirement as defined by the
Veterans' Re-employment Rights Act, and who maintained their vested
interest in their UVM Retirement Savings Plan during their absence may,
after one year of re-employment, regain the amount of retirement money
the University would have contributed on their behalf during their
obligated military service. After one year of re-employment, you must
contribute the minimum required percentage of gross base UVM
salary at the time of separation, for the period of obligated
service as defined by the Veteran's Re-employment Rights Act. You will
then receive UVM's contribution for the period of your absence, based
on your pay at the time of separation. Eligibility requires that your
absence and re-employment meet UVM's military
leave policy and the provisions of the Veterans'
Re-employment Rights Act.

Re-Employment Rights

When you have three or more years of
continuous service and are re-employed by UVM in another continuous
regular position within two years of the original separation (except
when terminated for cause), the waiting period for your University
retirement plan contributions will be waived.

Section 457 Voluntary Excess
Retirement Savings Plan

The University offers a voluntary employee funded Deferred
Compensation Plan [457(b)] to employees who have contributed the
maximum under the University’s [403(b)] Retirement Savings Plan.

Participants may contribute to the plan a dollar amount up to
100% of their compensation minus their benefit costs (e.g., FICA and
Medicare taxes, health and dental deductions, etc.) to a limit of
$16,500 in calendar year 2009. Reduction forms should be submitted
annually (ideally in January) in order to obtain the maximum
contribution.

Participants who wish to contribute more than the elected
deferral amount (see above) have two programs they can use:

Special §457 catch-up option and

Age 50+ catch-up.

Reduction forms for the catch-up options should also be
submitted annually (ideally in January) in order to obtain the maximum
contribution.

The Special §457 catch-up option is only available to of those
employees between the ages of 62 and 65. Employees within three (3)
years of the Plan's normal retirement age (sixty-five [65]) may
contribute a catch-up equal to the annual limit. Employee’s eligible
for this catch-up provision can contribute up to $33,000 in 2009.

To be eligible for the Age 50+ catch-up contributions in a
calendar year, you must be at least age 50 by December 31 of that year,
must have elected to defer the maximum regular reductions as adjusted
for cost-of-living, and must not be eligible for Special Section 457(b)
catch-up. Age 50+ catch-up is limited to $5,500 for 2009.

If you come to the University from another nonprofit
organization and you enroll in the University's retirement plan upon
employment, contributions to a 457(b) plan through that other
employer's plan during that initial calendar year will be combined with
UVM's when determining your maximum contributions for that year. The
sum of such contributions cannot exceed $16,500 in 2009 if you are 49
years of age or less or $22,000 in 2009 if your are 50 years of age or
more, subject to change annually in accordance with IRS regulations

The investment options under the 457 Plan are the same as
those available under the 403(b) Plan.

In order to enroll, employees must first
agree to contribute the maximum to the 403(b) Plan, either totally
through UVM or in combination with contributions through another
employer, e.g., FAHC.

Workers'
Compensation

UVM insures you for accidental bodily
injuries, occupational illnesses, and work time lost as a result of
these occurrences while you are performing assigned job duties.
Workers' Compensation is governed by state law which supersedes any
University policies.

Accident Reports

Any injury, no matter how insignificant,
must be reported to your immediate supervisor. You and your supervisor
will complete a "First
Report of Injury" form which is available from Risk
Management, 109 South Prospect, 656-3242. This form must be returned to
Risk Management within 24 hours of the incident. Call Risk Management
if you have any problem completing the form. All reports must be
submitted by Risk Management to the State within 72 hours of the
injury.

Medical Expenses

If you must pay for medical expenses due
to a job-related injury or illness, submit your bills and receipts to
Risk Management. Medical expenses for job-related accidents should not
be submitted to the medical insurance plan.

Temporary Disability Payments

If you lose work as a result of an injury
or illness due to a job-related accident, you will receive payments
according to a schedule set by state regulations.

Workers' Compensation payments will be
paid at a rate equal to two-thirds of your average weekly earnings for
the 12 weeks before the date of your disability, subject to the minimum
and maximum allowable by law. You will receive an additional amount,
also defined by law, for each dependent under age 21. You can request
information regarding the amount of disability payments from Risk
Management.

Payments will be made for time lost in
excess of three days. If you are disabled for four to ten consecutive
days, you will receive payment calculated from the third day of
disability. If your disability extends beyond ten days, you will
receive payment calculated from the first day of disability.

When Workers' Compensation pays for time
lost and a waiting period applies, you will not be charged medical
leave for the waiting period. The University pays wages for time lost
during the waiting period.

Medical Leave

You may choose to be paid from either your
accrued medical leave or you may receive Workers' Compensation
disability payments during absences caused by a work-related accident
or illness. Only one option may be chosen. If you receive Workers'
Compensation payments directly, you will not accrue additional vacation
or medical leave from the University, nor will you receive UVM
contributions to the retirement plan if enrolled.

If you decide to be paid from medical
leave, you will receive full pay for the period of available medical
leave. Workers' Compensation insurance payments to you under this
option must be endorsed to UVM and deposited to the appropriate
departmental account. After deposit of the insurance check, you receive
a credit of the time equivalent of the insurance payment to your
medical leave (the total insurance dollars divided by hourly rate
equals equivalent hours of medical leave). If you are receiving
short-term disability payments from UVM, the amount of short-term
disability will be reduced by the amount of Workers' Compensation
received.

Follow-Up Appointments

Once you have returned to work after an
injury or illness that was covered by Workers' Compensation, any
follow-up visits to a doctor required by that injury are not charged to
your accumulated medical leave. As with other Workers' Compensation
claims, any bills must be submitted to Risk Management where they are
forwarded to the Workers' Compensation insurer for payment. If your
claim is refused by Workers' Compensation, your medical leave will be
charged for the absence retroactively.

Unless there is an emergency, notify your
supervisor of a medical appointment as far in advance as you can. Make
your appointment toward the beginning or end of the day since your
absence may not exceed a half day. Return to work directly after your
appointment and provide your supervisor with written evidence of the
time and place of your appointment.

Unemployment
Compensation

UVM is a covered employer under the
Vermont Unemployment Compensation Law. To draw unemployment
compensation benefits, you must meet state eligibility requirements and
serve any disqualification periods.

Unemployment Compensation is governed by
federal and state law which supersedes any University policies. Request
information and applications for benefits from:

Eligibility

The following rules are in accordance with
federal and Vermont law. They are subject to revisions in federal and
state law and are not all-inclusive.

Required Conditions

You must have worked in any covered
employment and have earned at least $1,000 in any calendar quarter of
the base period, and have earned at least 40% of the high quarter
amount in the remainder of the base period. For additional information,
contact the Vermont Department of Employment and Training.

Other Conditions

As an unemployed person, you must:

have registered for work at your local state employment
office.

have made a lawful claim for benefits and continue to
report for those benefits as required.

be able and available to work.

Exception: According to current Vermont law, employees on academic-year
appointments who have reasonable assurance of re-appointment for the
ensuing academic year are ineligible for unemployment benefits between
academic years.

Qualifications and
Disqualifications

Any employee who loses a job through
circumstances beyond his or her control, such as layoff, reduction in
force, grant termination, non-reappointment, non-adaptability, etc.,
and who is otherwise eligible, may be entitled to unemployment
benefits.

Termination for cause or misconduct
connected with work may disqualify a claimant for benefits for a period
of 6 to 12 weeks, as determined by the state, depending on the issue.

Voluntary resignation or termination for
gross misconduct connected with work disqualifies a claimant for
benefits until he or she has purged the disqualification by earning a
total of six times the weekly benefit amount with a bona fide employer
and is then laid off by that employer.

Any employee who leaves work because of a
health condition, as certified by a physician, will be disqualified for
benefits for a period of one to six weeks.

Benefits

Any qualifying person may draw a weekly
benefit amount computed by dividing the total wages paid in the two
highest base period quarters by 45, subject to a maximum weekly amount
as established by State law. The benefits may be drawn for a maximum
amount of 26 weeks except during times of high unemployment when the
maximum number of weeks may be extended.

Funding of Unemployment
Compensation

Unlike most employers who pay payroll
taxes into the Unemployment Trust Fund, UVM pays unemployment
compensation by direct reimbursement, dollar for dollar. This means
benefits paid to former employees are billed directly to UVM by the
State of Vermont. Since these costs affect fringe benefit rates,
benefits are paid only in genuine cases of unemployment and are not
considered as severance or termination payments.

Social Security

Federal law governs Social Security and
supersedes any UVM policies. For details of any changes in the law,
information, answers to questions, and applications for benefits,
contact your local Social Security office. The Burlington office is
located at:

56 Pearl Street
Burlington, VT 05401
1-800-772-1213 (toll free)

All UVM employees, except federal employees, are covered by Old Age,
Survivors, and Disability Insurance (OASDI), known as Social Security.
The funding for Social Security benefits comes from your withholding
taxes known as FICA (for Federal Insurance Contribution Act) which is
paid in equal percentages by you and your employer. There are actually
two Social Security taxes deducted from your paycheck, OASDI
at 6.2% and Medicare at 1.45%. Check with Human Resource
Services (228 Waterman) for additional information.

The following is a description of some of
the benefits provided by Social Security:

Retirement Benefits

If you were born before 1938, you will be
eligible for your full Social Security benefit at the age of 65.
However, beginning in the year 2000, the age at which full benefits are
payable has increased in gradual steps from 65 to 67. This affects
people born in 1938 and later. For example, if you were born in 1940,
your full retirement age is 65 and 6 months. If you were born in 1950,
your full retirement age is 66. Anybody born in 1960 or later will be
eligible for full retirement benefits at 67.

No matter what your "full" retirement age
is, you may start receiving benefits as early as 62. However, if you
start your benefits early, they are reduced five-ninths of one percent
for each month before your "full" retirement age. For example, if your
full retirement age is 65 and you sign up for Social Security when
you're 64, you will receive 93 1/3% of your full benefit. At 62, you
would get 80%. (Note: The reduction will be greater in future years as
the full retirement age increases.)

Note: There are disadvantages and
advantages to taking your benefit before your full retirement age. The
disadvantage is that your benefit is permanently reduced. The advantage
is that you collect benefits for a longer period of time. Each person's
situation is different, so make sure you check with Social Security
before you decide to retire.

Survivor Benefits

Monthly income payments may be provided to
survivors of deceased UVM employees. Application should be made
promptly to Social Security since it can take several months before
payments begin. A lump sum payment of $255 toward funeral expenses is
provided to the eligible surviving spouse.

Disability Benefits

If you become totally and permanently
disabled, or if your disability is so severe as to prevent you from
substantial work and is likely to continue for at least 12 months, or
if it may result in death, you may begin receiving Social Security
benefits six months after the disability occurs. You must have worked
under Social Security long enough and recently enough to be eligible.
Application for disability benefits may be made to the Social Security
Administration. Payments may also be available to your dependents on
the same basis as the retiree.

Medicare

Medicare is a two-part health program for
retired people over age 65 and people under 65 who have been receiving
Social Security disability benefits for two years or people who have
end-stage renal disease.

Part
A:

Hospital
Insurance at no charge.

Part
B:

Medical
Insurance. For current premium rates as defined by Social Security
legislation, call Social Security at 1-800-772-1213 or Human Resource
Services at 656-3150.

The following people must enroll in Parts A and B as soon as they
become eligible:

all retired employees, including
disabled retirees

spouses and dependents of any retired or disabled retired
employees

Note: Since Medicare Part A has no cost to the beneficiary (covered
person), any active employee or a dependent of an active employee who
qualifies for Medicare should enroll in Part A immediately upon
attaining eligibility, currently age 65. As an active employee or as a
dependent of an active employee with full-time health coverage you may
waive Medicare Part B coverage without penalty. The
University requires that all non-working employees and their dependents
sign-up for Medicare Part B so that it is effective the first day of
the first month of your retirement.

To Enroll in Medicare

Once you are eligible, you must enroll in
Medicare through a local Social Security office. The enrollment period
lasts from three months before the month of your 65th birthday to three
months after the month of your 65th birthday. You'll have to wait until
the next general enrollment period, January to March, if you miss your
regular enrollment. In addition, you'll be assessed a 10% penalty for
each year after your original eligibility date. Coverage becomes
effective on July 1 following general enrollment. Any active employee
or a dependent of an active employee who qualifies for Medicare should
enroll in Part A immediately upon attaining eligibility. The enrollment
period is extended and penalties are waived for people who are
Medicare-eligible but are covered under a large group medical plan as
an active employee, or a dependent of an active employee until the
employee retires.

Federal law governs Social Security and
supersedes any UVM policies and is subject to change. For details of
changes, information, answers to questions, and applications for
benefits, contact your local Social Security Office. The Burlington
Office is located at 56 Pearl Street, Burlington, Vermont 05401,
telephone toll free at 1-800-772-1213.

General
University Insurance Protection

You are covered by blanket bond
protection, general liability insurance and errors and omissions
insurance while working. The University shall provide its officers and
employees a legal defense, and pay costs, judgments or settlement
expenses incurred in connection with the defense or resolution of
external civil actions filed against such persons in connection with
their performance of University duties, provided that all eligibility
criteria established by the University are otherwise met. Please
contact Risk Management for a copy of the Officer and Employee
Indemnification Policy.

If you are involved in an accident while
operating a personally owned vehicle or a vehicle leased in your name,
liability protection will be governed by your automobile insurance
coverage, not by UVM's. If you are involved in an accident while
operating a vehicle owned or leased in the name of the University, you
must report the accident to your supervisor immediately who must then
report it to Risk Management (656-3242) and Police Services (656-3473).
You should not operate UVM owned or leased vehicles for personal use.
If you are in an accident while using a UVM vehicle for personal use,
you will be responsible for damages and/or liabilities. You must
maintain a personal automobile policy with extended non-owned and
physical damage coverage to protect you against claims arising out of
personal use.

Your personal property, whether used to
perform your assigned duties or not, is not covered by UVM insurance.
It is your sole responsibility.

Notify the Office of General Counsel
(656-8585) and Risk Management (656-3242) immediately if you are served
with a complaint relating to performance of your University duties.

Travel
and Accident Insurance While on UVM Business

In addition to group life insurance, UVM
also provides travel and accident insurance to you if you are traveling
on University business. Business is defined as "while on assignment by
or at the direction of UVM for furthering its business interest, but
shall not include any period of vacation or leave of absence." Coverage
provides $150,000 per accident resulting in death and $75,000 per
accident resulting in loss of hand, foot, or eye.

Coverage extends to employees while riding
as a passenger in, or boarding or alighting from, any land or water
conveyance, or riding as a passenger in, or boarding or alighting from,
any civil aircraft while on University business. The beneficiary of
this policy is pre-designated For further information and details
contact Risk Management (656-3242).

Tuition
Remission

Employees

Any
employee in benefits group A, B, C or D may be granted tuition
remission for courses taken for credit or audit at The University of
Vermont. Employees in benefits groups A, B, and C may take up to 15
credits of course work or thesis research per year beginning September
1 and ending August 31, tuition free.

Employees in benefits group D
may take up to 9 credits in one year, tuition free, beginning September 1 and ending
August 31.

While the University places no
restrictions on the courses taken, the IRS has ruled that under some
conditions, tuition remission for courses taken toward a graduate
degree may be taxable. Contact Human Resource Services for more
information.

If a course is not available during the
evening session, supervisors may authorize an employee to attend
classes during the workday. However, time spent away from the job to
attend classes must be made up by the employee or taken as vacation,
personal days (if applicable), or unpaid leave, if approved by the
supervisor.

The University will pay the comprehensive
fee and summer session registration fees associated with courses which
receive tuition remission benefits.

To be covered by tuition remission for a
given semester, the employee must begin employment before the close of
the semester add/drop period. Tuition remission is available only to
paid employees during active employment and to employees who retire
after qualifying for post-retirement benefits as described previously.
Course work begun under tuition remission during active employment may
be completed after an employee becomes inactive (e.g., on unpaid leave
or terminated) provided that the separation of active employment occurs
after the end of the semester add/drop period.

Tuition remission benefits are
automatically credited for eligible employees when they register for
courses through Continuing Education or the Registrar's Office during
the registration process.

Tuition
Reimbursement for Employees Living and Working Over
40 Miles from the University of Vermont Main Campus

UVM faculty and staff members who live and
work 40 or more miles from the University of Vermont main campus in
Burlington may apply for tuition reimbursement for courses taken at any
of the colleges for which tuition remission is now available to
dependent children. These are Johnson State College, Lyndon State,
Castleton State, Community College of Vermont, and Vermont Technical
College. Employees will qualify for tuition remission at these colleges
using the same criteria for which employees qualify for on-campus
tuition remission.

Tuition remission for UVM faculty and
staff at these colleges is paid for by UVM as a direct expense and is
not covered in the reciprocal agreement for tuition exchange between
UVM and the State Colleges.

To qualify for tuition remission, the
employee must complete the course, although there is no requirement for
completion with a passing grade.

Employees may apply for reimbursement in
either of the following ways:

Method 1: Payment in Advance

After qualifying for tuition reimbursement
by submitting an application to the Human Resource Services Office, the
employee may then pay for the course in advance. Upon completion of the
course, the employee submits proof of completion and evidence of
tuition payment to the Payroll Records Office. Reimbursement will
follow by inclusion in a subsequent paycheck. Having paid his or her
tuition in advance, the employee will immediately qualify for tuition
remission in the following semester within the guidelines of the UVM
tuition remission policy.

Method 2: Direct Billing

An employee may find it difficult to pay
for tuition in advance of taking a course. In this case, when applying
for tuition remission, he or she may request that UVM authorize the
College to bill UVM directly in advance of the course. If the College
cannot bill UVM directly, UVM will arrange to pay for the course in
advance.

Once the course is completed, the employee
will be required to provide proof of completion before applying for
tuition remission for another course. If the employee has not shown
evidence of having completed the course, payment for a subsequent
course must be paid for in advance by the employee as in Method 1.

If the employee drops or withdraws from
the course, any tuition paid by UVM or any credit due from payment of
the employee's tuition will be refunded by the College where the course
is taken to UVM directly. If direct refund to UVM is not possible, UVM
will require reimbursement from the employee. UVM reserves the right to
deduct the refunded amount from the employee's paycheck.

Residency

The University will pay for in-state
tuition or out-of-state tuition dependent upon whether the employee or
his/her dependents meet the criteria for state residency. It is the
responsibility of the employee to correctly complete the necessary
paperwork to confirm residency status upon enrollment.

Spouses
of Employees

The spouse of an employee in group A, B,
or C may audit courses at UVM without tuition charge on the same basis
that the employee may take courses for credit, i.e., 15 audit hours per
year from September through August. In addition,
comprehensive and summer session fees are covered even if your spouse
takes courses for credit.

Surviving Spouses

If you die when you are an employee while
in benefit groups A, B, or C, your surviving spouse or civil union partner will be granted
tuition remission at UVM for all courses taken for credit. There is no
restriction on the number of courses taken or the degree pursued;
however, tuition remission for courses applied toward a graduate degree
may be considered taxable income by the IRS. If you have questions
regarding the taxable status of your tuition remission benefits, check
with Human Resource Services. Remarriage renders a surviving widow or widower ineligible
for this benefit.

Dependent
Children of Employees

a. Any dependent child of a faculty
member who has been in benefits group A, B, or C
prior to the end of the semester add/drop period may receive tuition
remission for all courses taken at UVM or any Vermont State College. To
qualify, the dependent must be a full-time matriculating undergraduate
student.

b. To qualify for tuition remission,
dependent children must:

have accepted admittance to an undergraduate degree or
certificate program;

be enrolled for at least 12 credit hours each semester,
except the final semester if less than 12 credits are needed to
graduate; or in circumstances where the student's academic advisor or
UVM Student Health Service or UVM Counseling and Testing recommends
less than a full-time academic load;

when applicable, be certified as a dependent by the
parent's tax return
or when not applicable, by written certification of dependency and
claimed as a dependent for tax purposes in the following tax year,
signed by the employee/parent, and, if your dependent child is not
listed on your tax return, you should attach legal evidence that the
parent who is a UVM employee is responsible for paying for the child's
education. Please contact Human Resource Services if your dependent
child is married, or if your dependent child is not listed as a
dependent on your tax return.

complete The University of Vermont or a Vermont State
Colleges degree program within seven consecutive academic years and not
exceed 150 attempted or paid credit hours, or complete a degree program
begun at UVM and finished at a state college or vice versa within seven
consecutive academic years.

c. In no case will tuition remission be granted:

before the first semester of matriculated enrollment,
unless the child is taking a full-time course load under the Guaranteed
Admission Program (GAP). In this case, an exception may be granted by
the President or his/her designee;

if the dependent child already has a bachelor's degree;

for the pursuit of an advanced degree; or

if the dependent child has not begun his or her
undergraduate degree program before age 21 (unless he or she had to
defer a college education because of a full- time service in the armed
forces, in which case the age limit will be extended by the number of
years of active service not to exceed four years plus one additional
year at the convenience of the government).

d. Tuition remission will be withdrawn at the beginning of the semester
in which:

the student's course load drops below 12 credit hours,
unless an academic advisor or UVM Center for Health and Wellbeing or
UVM Counseling Center advises that the student's credit load be reduced
for a semester (Note: medical, dental, and life insurance eligibility
will be affected by a course load under 12 credits per semester) or;

the employee terminates before the semester add/drop
period ends.

e. Tuition remission will be withdrawn at the end of the semester in
which:

the dependent child reaches age 28, unless education was
deferred for service in the military, or

the child is no longer a dependent, or

the employee terminates after the semester add/drop period.

f. Tuition remission for summer session courses at UVM and Vermont State Colleges may be granted
if the dependent child submits a memo from his or her faculty advisor
to the Associate Vice-President of Human Resources indicating that the
credits taken will be applied to satisfy requirements of the degree
which the student is pursuing. Note: Dependent children who are
undergraduate students at other institutions will qualify for this
benefit if they meet all of the qualifications as previously described.

g. Tuition remission as outlined above is
granted to dependent children of: employees who retire after becoming
eligible for retirement or disability benefits as previously described
herein; active employees who die after having completed four years of
continuous University employment; and employees on leave status from
the University for not more than one year.

h. Military Studies personnel and Civil
Service employees of the UVM Military Studies Department who are
residents of the State of Vermont as defined by the University are
eligible for employee tuition benefits for their dependent children
during the period of their contractual relationship. Eligibility for
benefits will occur in the academic semester following one year of
service.

i. If an employee with three or more years
of at least half-time continuous regular service is re-employed by the
University in another half-time or more continuous regular position
within two years of the original separation (except in cases of
termination for cause), the one-year waiting period for eligibility of
tuition remission for dependent children will be waived. Also, if
involuntarily terminated other than for cause, and returning within two
years, the previous length of service will be applied toward the
one-year waiting period.

j. Information and forms to be completed
for tuition remission requests may be obtained from the Forms area of the HRS web site prior to enrollment of the dependent student.
A tuition remission form must be completed for each dependent child
each year. In addition, the student must register for classes through
the normal registration process.

Exceptions to the Policy

Exceptions to any tuition remission
policies must be approved by the President of the University or his/her
designee.

Tuition Remission During Disability

If you receive disability benefits or die
after four years of regular continuous employment at UVM, you and your
dependents will remain eligible for the same tuition remission benefits
as before your disability, except that if you die, your surviving
spouse may take unlimited courses at UVM for credit. There is no
minimum length of service for this benefit. Remarriage renders your
surviving spouse ineligible for this benefit.

Note: UVM reserves the right to amend,
modify, or terminate these benefits without prior notification.

Post-Retirement Benefits

Eligibility for Benefits After Retirement

Note: UVM retains the right to amend,
alter, or terminate post-retirement benefits at any time for
prospective and existing retirees.

Post-Retirement Benefits for Those Hired Before July 1, 1997

Full-Time Represented Faculty Members

You must be at least 55 with 10 years
of continuous employment in benefit groups A, B, C or D to be eligible for full post-retirement benefits.
You will qualify for continuation of medical, dental and life insurance
benefits if you were eligible for them at the time of your retirement.

Medical
Insurance

You are eligible for the same medical
plans that are provided to active employees until you and your
dependents qualify for Medicare. Once you or your dependents are
eligible for Medicare, you qualify for Blue Cross Blue Shield's JY
Carve Out Plan. Under the JY Carve Out Plan, you and your covered
dependents must enroll in Medicare Part B and pay the premiums. You
will not be reimbursed for the cost of Medicare Part B. Medicare pays
its benefits first, and unpaid balances are covered up to the JY Carve
Out Plan limits. For a full description, contact Human Resource
Services at 656-3150.

The retiree must pay for premiums for
him/herself and for his/her dependents as described in the UA Full-Time Collective Bargaining Agreement.

Dental Insurance

Coverage is the same
as for active employees. Premium costs are stipulated by the UA Full-Time Collective Bargaining Agreement. You must be insured at the
time of retirement or wait until open enrollment to qualify. The High
Option Plan is available to retirees.

Life Insurance

Post-retirement life insurance benefits
will decrease as you grow older.

If you are retiring between the ages of 55
and 64, you will receive the same coverage as active employees. If you
choose $6,000 or $50,000 in coverage, you will receive the full amount.
If you choose 2-7 times coverage, you will get the lower of either 2
times coverage or $50,000. Your insurance reduces to half at age 65,
and ends at 70. Coverage will never be less than $6,000 prior to
reaching age 70. You must be insured at the time of retirement to be
eligible for this benefit.

If you are retiring between the ages of 65
and 70, you will receive the same coverage as active employees. If you
choose $6,000, you will receive the full amount. If you choose $50,000,
you will get $25,000. If you choose 2-7 times salary, you will get half
of 2 times salary or $25,000, whichever is lower. Coverage ends at age
70.

If you retire after age 70, coverage ends
at retirement. Dependent coverage ends on retirement.

Tuition Remission

Retirees and their dependents will retain
the same tuition remission benefits as active employees.

Part-Time Employees

You must be continuously employed at 75%
but less than 99% FTE, be in benefit group D for ten years and be age 55 to qualify for
post-retirement benefits. You are eligible for medical, dental, and
life insurance benefits if enrolled at the time of retirement.

The medical and dental benefit is the same
as for full-time represented faculty, except that the premium will be based on the
inverse of your average FTE over the ten years with the highest FTE, plus the amount that a full-time faculty member would pay as stipulated in the UA Full-Time Collective Bargaining Agreement.
For example, if you retire after 15 years of service, and you worked 7
years at 100% and 8 years at 75%, the average would be:

7
years x 100% =

700

3
years x 75% =

225

Total

925

925
divided by 10 =

92.5%

The individual would pay 7.5% plus the amount a full-time retiree would pay, and UVM will pay the remaining portion.

If you are enrolled in a life insurance
plan at the time of your retirement, benefits are the same as for
full-time retirees as described above.

Tuition remission benefits are the same as
those for active part-time employees.

Post-Retirement Benefits for Those Hired After June 30, 1997 and Before July 1, 2011

Full-Time Faculty Members

You must be at least 60 with 15 years of
continuous employment in benefits groups A, B, C or D to be eligible for full post-retirement
benefits. You will qualify for continuation of medical, dental and life
insurance benefits if you were eligible for them at the time of your
retirement. Tuition remission continues as provided to active
employees.

Coverage for medical, dental and life
insurance is the same as for represented full-time faculty members in benefits groups A, B, C or D hired
before July 1, 1997. Click here for details.

Part-Time Faculty Members

You must be at least 60 with 15 years of
continuous part-time employment of at least 75% but less than 99% FTE to be eligible for
part-time post-retirement benefits. You will qualify for continuation
of medical, dental and life insurance benefits if you were enrolled in
them at the time of your retirement. Tuition remission continues as
provided for active part-time employees. Premium
payments will be as described for faculty members who were hired before
July 1, 1997. (See the current fiscal year Medical & Dental
Costs in the Employee
Information section of the HRS web site.)

Leave Policies

In addition, for faculty members
represented by United Academics, the following leave policies
apply. Non-represented faculty should refer to the Officers'
Handbook.

Bereavement
Leave. A faculty
member is entitled to three (3) days of paid bereavement leave for
deaths within the immediate family, which may be extended to five (5)
days if approved by the department chair or dean. Immediate
family is defined to include: spouse (which includes a partner in a
civil union), children or stepchildren, parents or stepparents,
brothers or sisters, sisters- or brothers-in-law, son-in-law,
daughter-in-law, grandparents, grandchildren, the mother or father of
the faculty member's spouse, aunts, uncles, the aunts or uncles of the
faculty member's spouse, sisters- and brothers-in-law of the faculty member's
spouse, and the brothers or sisters of the faculty member's spouse.

Military
Leave. A military leave
without pay shall be granted upon request of any faculty member who
enters active military service of the United States or civilian service
of the United States which are an essential part of the national
defense program. Upon conclusion of the leave, the faculty member shall
be subject to reinstatement in accordance with the provisions of
applicable federal or state law.

During short-term military leave, the
University will continue salary and benefits for up to ten (10) days
per year plus an additional ten (10) days due to emergency call out by
the President of the United States or the Governor of the State of
Vermont.

The University will adhere to
all requirements of the Uniform Services Employment and Reemployment
Act (USERA) as well as the UA Full-Time Collective Bargaining Agreement..